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angus@xxxxxxxxxxxxxxxxx wrote:
> I think you are talking about the flying Titanic. I would not just
> rely on 1 system eventhough it is made up of various breadth
> indicators...
In regards to the Titanic System mentioned, I was not making a market
prediction; I simply felt that this phenomenon should be pointed out.
Looking closely at the S&P 500, the uptrend line in effect since late
January has clearly been violated. The resulting lateral move tested
the April 4th high twice and was turned back on an increase in volume.
This is bearish action. Also, for the first time the minor support line
at approx. 1100 was broken with an increase in price spread and volume
on the downside, a first in this market cycle.
My experience tells me that big rallies like the one we have had don't
end abruptly or easily. My best guess is that the the stock market has
encountered its first serious bout of supply since the rally began in
January, putting the recent uptrend in doubt.
Although a large move down from here seems unlikely, upside potential
from the established highs also seems limited.
C. Fox
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